Commission warns about more unsolicited offers

Friday 18 March 2011, 4:46PM
By Securities Commission

The Securities Commission is alerting investors to be wary of further unsolicited offers for shares which have been brought to its attention following a warning it issued yesterday.

The latest offers are from NZ Investment Securities LP for Vector Limited shares and Carlyle Securities LP for Contact Energy shares.

Commission chairman, Jane Diplock, said "These offers are worth significantly less than appears at first sight - it cannot be in a shareholder's best interests to accept."

Like the offers warned of yesterday, although the offer price would appear to be above the market value of the shares, payment for the shares is deferred. The payment wouldn't be received by the investor in full for as long as 10 years - with yearly payments being made in instalments of only a few cents a year per share.

For yesterday's warning and guidance on unsolicited offers, see the Commission's website